I need help with my incorrect answers Consolidation subsequent to date of acquis

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I need help with my incorrect answers

Consolidation subsequent to date of acquisition - Equity method with noncontrolling interest and AAP Assume that, on January 1, 2013, a parent company acquired a 90% interest in its subsidiary. The total fair value of the controlling and noncontrolling interests was $480,000 over the book value of the subsidiary's Stockholders' Equity on the acquisition date. The parent assigned the excess fair value to the following [A] assets: [A] Asset Initial Fair Value Useful Life (years) nitial Useful Fair Value Life (years) 20 10 10 200,000 Indefinite [A] Asset Property, plant and equipment (PPE), net Patent Customer list $160,000 80,000 40,000 Goodwill $480,000

Explanation / Answer

c Pre-consolidation Equity Investment account beginning and ending balances Equity Investment at 1/1/16 90% x book value of the net assets of subsidiary $536,400 Unamortized AAP $378,000 $914,400 Equity investment at 31/12/16 90% x book value of the net assets of subsidiary $622,800 Unamortized AAP $360,000 $982,800 Book value at 1/1/16 Common Stock 56000 APIC 72000 Retained earnings 468000 Total 596000 90% of book value 536400 Book value at 31/12/16 Common Stock 56000 APIC 72000 Retained earnings 564000 Total 692000 90% of book value 622800 d The activity in the parent's pre-consolidation Equity investment t-account Equity Investment Balance at 1/1/16 $914,400 $14,400 Dividend Net income $100,800 $18,000 AAP amortization Balance at 31/12/16 $982,800 e The owner's equity attributable to the noncontrolling interest beginning and ending balances Non-controlling interest at 1/1/16 10% x book value of the net assets of subsidiary $59,600 Unamortized AAP $42,000 $101,600 Non-controlling interest at 31/12/16 10% x book value of the net assets of subsidiary $69,200 Unamortized AAP $40,000 $109,200 f Consolidated net income, controlling interest net income, noncontrolling interest net income Consolidated: Parent's stand alone net income $320,000 (402800-82800) Subsidiary stand alone net income $112,000 Less: 100% AAP amortization $20,000 Consolidated net income $412,000 Parent: Parent's stand alone net income $320,000 90% of subsidiary's stand alone net income $100,800 Less: 90% AAP amortization $18,000 Consolidated net income attributable to the controlling interest $402,800 Subsidiary: 10% of subsidiary's stand alone net income $11,200 Less: 10% AAP amortization $2,000 Consolidated net income attributable to the noncontrolling interest $9,200 Consolidated Worksheet C Equity Income $82,800 Consolidated net income attributable to the noncontrolling interest $9,200 Dividend $16,000 Equity Investment $68,400 Noncontrolling Interest $7,600 C Common Stock $56,000 APIC $72,000 Retained Earnings $468,000 Equity Investment $536,400 Noncontrolling interest $59,600 A Property, plant and equipment, net $136,000 Patent $56,000 Customer List $28,000 Goodwill $200,000 Equity Investment $378,000 Noncontrolling interest $42,000

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